NEW YORK STATE SENATE
MEMORANDUM IN SUPPORT OF LEGISLATION
Submitted In Accordance with Senate Rule VI, 11
SENATE NO: 4186
SPONSOR: William J. Larkin, Jr.
ASSEMBLY NO:
SPONSOR-
-TITLE OF BILL-.
AN ACT to amend the racing, pari-mutuel wagering, and breeding law,
In relation to requiring providers of Internet gambling or wagering to
post a bond with the state racing and wagering board.
PURPOSE OF BILL:
. Requires persons, firms, corporations or other legal entities providing
gambling over the Internet to post a bond with the racing and wagering
board.
SUMMARY OF SPECIFIC PROVISIONS:
Section I of the bill amends the racing, pari-mutuel wagering and breeding
law to add a new section 111 to require any person, firm, corporation or
other entity, except those entities which exclusively offer wagering on
horse races, providing gambling or wagering services by means of computer
communication services to post a bond with the racing and wagering board.
Section 2 provides for the effective date.
JUSTIFICATION:
As of the date of drafting this Memorandum (4/3/97), approximately 16
companies offer interactive wagering programs on the Internet. All
of these companies are situated In foreign counties (i.e. Grenada,
Anguilla and St. Kitts to mention a few) and market their services to New
York State residents.
This bill would require Internet gambling companies to post a bond In
an amount to be determined by the New York State Board of Racing and Wagering
In order to protect New York State residents from fraudulent or deceptive
practices.
EFFECTIVE DATE:
This act shall take effect on the 120th day after It shall have become
a law; provided that the state racing and wagering board Is authorized
to promulgate any and all rules and regulations and take any other measures
necessary to implement thle act on its effective date on or before such
date.
Section 1. The racing, parimutuel wagering and breeding law is
amended by adding a new section Ill to read as follows:
5 111. Computer communication system gambling or
wagering; bond
required.- Any person firm, corporation or other entity
providing
gambling or wagering services by means of a computer communications
system, except those firms, corporations or other entities offering
exclusively wagering on horse races shall post a bond, in an
amount to
be determined by the racing and wagering board and for such
purpose or
purposes as such board shall determine,- with such board.
S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided that the state racing and
wagering
board is authorized to promulgate any and all rules and regulations
and
take any other measures necessary to implement this act on its
effective
date on or before such date.